Court halts planned privatisation of Kenya Pipeline
By Zipporah Ngwatu, August 15, 2025A Nairobi High Court has barred the government from selling its stake in the Kenya Pipeline Company until a petition filed by the Consumers Federation of Kenya (COFEK) is heard and determined.
Justice Bahati Mwamuye, on Friday, August 15, 2025, blocked the Cabinet Secretary, National Treasury and Economic Planning, the Privatisation Authority and five others from implementing the share purchase agreement.
“Pending the inter partes hearing and determination of the petition dated August 14, 2025, a conservatory order be and is hereby issued restraining the respondents and the interested parties, jointly and severally, and whether by themselves or through their agents, servants, or any person acting under their authority, from offering for sale, allocating, disposing, transferring, or otherwise dealing with any shares of the Kenya Pipeline Company Limited, pursuant to the impugned privatisation plan,” Justice Mwamuye ordered.
File proof of service
He also directed COFEK to serve the respondents and all interested parties with the application, petition, and court order, and to file proof of service by close of business.
COFEK, through a certificate of urgency filed at the Constitution and Human Rights Division, sought the court’s order barring the government from selling its stake in the Kenya Pipeline Company.
“Pending the hearing and determination of this application inter partes, the honourable court be and is hereby pleased to issue a conservatory order staying the intended acquisition of a controlling stake pursuant to the share purchase agreement dated July 31, 2025, or any implementation of the agreement,” COFEK states in its petition.
Further, they asked the Court to issue a temporary injunction restraining the Privatisation Authority (second respondent) from exercising control over the Cabinet Secretary, National Treasurer and Economic Planning, who is listed as the first respondent.
Notably, they urged the court to direct the Auditor General to carry out and file in court an audit report of the true value of the shares of the Cabinet Secretary, National Treasurer, and Economic Planning.
“Pending the hearing and determination of the petition, the Court be and is hereby pleased to direct the Auditor General, the ninth respondent herein, to carry out and file in this court an audit report showing the true value of shares of the first respondent,” part of the petition read.
According to COFEK, the respondents conducted and advanced the privatisation process of the Kenya Pipeline Company Limited without genuine, informed and structural public participation and without adequate disclosure of critical information to the public.
COFEK argues that the omission offends the binding national values and principles of governance under Article 10(2), including transparency, accountability, good governance and public participation, which apply to all government organs and public officers in the exercise of any function, whether in policy formulation or implementation.
In addition, COFEK state that by proceeding with the intended disposal of a controlling stake in a profitable and strategic state corporation without an independently verified valuation, cost-benefit analysis or fiscal impact assessment, the state has breached the principles of public finance management under Article 201, including prudent and responsible use of public resources.
Further, they assert that the disposal process, absent transparency, competitiveness and value for money safeguards, offends Article 227, which demands fairness, equity, transparency and cost-effectiveness in the disposal of public assets.
The matter will be heard in open court on September 5, 2025, at 10 AM.